by Charles Hugh-Smith
The entire financial management industry is a profit-skimming rentier arrangement.
It may seem uncharitable to note that only .4%–that’s 4/10th of 1%–of mutual fund managers outperform a plain-vanilla S&P 500 index fund over 10 years, but that is being generous: by other measures, it’s an infinitesimal 1/10th of 1%.
Most Hedge Funds Underperforming The S&P 500 For Fifth Year In A Row – Full YTD Performance (Zero Hedge)
Beginner’s Strategy: Investing in Low-Cost [...]
While the initial response to last week’s YHOO earnings was afterhours euphoria all of which fizzled in the first hours of trading, sentiment on the firm which has yet to do more than merely promise may sour in the coming days even more following news late on Friday that the company’s formerly staunchest advocate, Third Point’s Dan Loeb sold some 15% of his stake, or 11 million of 73 million shares [...]
January 15, 2013
This trend has been in place since the financial crisis, but the fact that it is accelerating is extremely disconcerting. First off, this is not the kind of behavior that should be witnessed in an “economic recovery.” Second, we need to remember the huge percentage of Americans on food stamps and/or disability. As I have discussed previously, many of them also have jobs. So essentially, a wage anda check [...]
The latest from Howard Marks of Oaktree:
The world seems more uncertain today than at any other time in my life. That’s a simple sentence but one with significant implications. And it’s not just me. Here’s what The New York Times said on August 12 in an article about John Bogle, the founder of Vanguard:
“It’s urgent that people wake up,” he says. This is the worst time for investors that [...]
German ruling the end of the euro rally, Nomura says
The ruling, along with last week’s European Central Bank announcement it will buy sovereign bonds, drove a rally in assets considered riskier, including the euro and stocks, and weighed on safe havens like the U.S. dollar DXY -0.24% and Treasury bonds, said Jens Nordvig, a currency strategist at Nomura Securities.
“But it is now time to take stock. How much [...]
Confused by the implications of Draghi’s pre-leaked speech? Don’t worry, you are not alone. As the following sampling of opinions by Wall Street experts via Reuters confirms, opinions range from the positive to the negative, to the completely clueless.
IOAN SMITH, STRATEGIST, KNIGHT CAPITAL
“With regards to seniority this point is important. Pari passu will not apply to existing SMP holdings which suggest dealing with Greece remains a problem. A precedent was [...]
Investors around the world are asking the critical question, are we looking at 2008 all over again or not? Today Michael Pento, of Pento Portfolio Strategies, writes exclusively for King World News to let readers know the answer to that all-important question. Here is what Pento had to say about the situation: “As most of you already know, I have for years been in the vanguard warning about the inflationary policies [...]
Matthew Amster-Burton, Mint
Recently on the mint.comFacebook page, a reader asked a common question:
Any investments for people with very little money to invest?
Normally, my response to this is the one nobody wants to hear: put the money in a savings account or savings bond, check out a book about investing from the library, save more money while you read the book, and start investing once you have the $1000 minimum to open an [...]
by Doug Short
The Q Ratio is a popular method of estimating the fair value of the stock market developed by Nobel Laureate James Tobin. It’s a fairly simple concept, but laborious to calculate. The Q Ratio is the total price of the market divided by the replacement cost of all its companies. Fortunately, the government does the work of accumulating the data for the calculation. The numbers are supplied in the [...]
by Henry Blodget
Until recently, the concern about Europe was mostly theoretical–a potential train-wreck that would occur if/when the world’s lenders decided that the continent’s problems extended beyond the basket case known as Greece to Europe’s “core” and starting pulling back.
Well, that concern is no longer theoretical.
The world’s lenders are increasingly deciding that it’s better to be safe than sorry, and they’re pulling their money out of Europe
As a result, the borrowing [...]
Friday, November 11, 2011
The collapse of the eurozone would cause a crash that would instantly wipe out half of the value of Europe’s economy, plunging the continent into a depression as deep as the 1930s slump, the president of the European Commission has warned.
José Manuel Barroso issued his chilling warning as France began diplomatic overtures to create a eurozone vanguard, potentially with fewer than the 17 existing [...]
Doug Short is the vice president of research at Advisor Perspectives.
Note from dshort: I have low confidence is the Q ratio this month.
The Flow of Funds data on which it’s based is increasingly stale.
The latest release in June includes data through Q1 2011.
The new Flow of Funds release will be available on September 16th. I’ll update this commentary that afternoon.
The Q Ratio is a popular method of [...]
Office of the Vice President
August 21, 2011
REMARKS BY VICE PRESIDENT JOSEPH BIDEN
ON U.S.-CHINA RELATIONS
FOLLOWED BY Q & A WITH STUDENTS
10:40 A.M. (Local)
THE VICE PRESIDENT: Thank you, all, very much. (Applause.) Mr. President, thank you for your gracious introduction. We have an expression in the United States Senate where I served for many years when we want to say something personal, we say, permit me a [...]
As the U.S. Congress came to an agreement on a budget that purportedly would avoid the nation’s first-ever default, talk-radio host Michael Savage warned his audience not to listen to voices on the left declaring it a victory for the tea party.
“If the left is telling you it’s a victory for the tea party, then you know it’s a lie,” he said to his “Savage Nation” [...]
The Q Ratio is a popular method of estimating the fair value of the stock market developed by Nobel Laureate James Tobin. It’s a fairly simple concept, but laborious to calculate. The Q Ratio is the total price of the market divided by the replacement cost of all its companies. Fortunately, the government does the work of accumulating the data for the calculation. The numbers [...]
While I’m an investor rather than trader, I think of myself as an ultra slow trader in that I try to bottom fish and load up on equities when prices correct and then hold them long term. As equities move up to “it’s too good to be true” levels, I then sell mutual funds back to money market to reload on the “dry powder”.
We have been advised in the past that dollar cost averaging, buy and hold avoiding all temptations to take yourself out of the market, is the “best” way to get “rich” and create “wealth” for retirement (whatever getting “rich” and “wealthy” means, since those terms were undefined). More particularly, we are urged to:
“Consider investing in a simple, diversified portfolio of low cost [...]
The Greek people have permitted a corrupt and collectivist Regime to take over their Nation and have allowed bribes, entitlements and instant gratification to disable their moral and intellectual compass.
Only default on public debt, expulsion from the EU and national humiliation can create the pain and exposure to truth and reality essential for resetting values, priorities and culture. Then and only then can the Greeks liberate themselves from the Regime [...]